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The impact of ownership type on nursing home outcomes
Author(s) -
Spector William D.,
Selden Thomas M.,
Cohen Joel W.
Publication year - 1998
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/(sici)1099-1050(1998110)7:7<639::aid-hec373>3.0.co;2-0
Subject(s) - exploit , nursing homes , business , for profit , demographic economics , sorting , survey data collection , public economics , actuarial science , economics , nursing , medicine , finance , statistics , computer security , mathematics , computer science , programming language
This paper examines the sorting of residents between for‐profit and nonprofit nursing homes and the health outcomes of those residents conditional on ownership type. Using data from the 1987 National Medical Expenditure Survey, we find evidence of systematic sorting of residents by ownership type, and significant effects of ownership type on outcomes. These results are broadly consistent with the hypothesis that for‐profit and nonprofit homes exploit their informational advantages to differing extents in a market characterized by asymmetric information. © 1998 John Wiley & Sons, Ltd.